ALLAHABAD BANK Vs. STATE OF BIHAR

JUDGEMENT

(1.) THIS application has been filed under Section 482 of the Code of Criminal Procedure for quashing of criminal proceedings including the order taking cognizance dated 21.5.1999 in connection with Complaint Case No. 124/99.

(2.) THE complainant, who was also one of the Directors claimed in the complaint petition that M/s. Bharat Re -rolling Mills was a Private Limited Company, registered under the Indian Companies Act, 1956. The complainant was inducted as an Additional Director on or about 6.12.1990 by co -option alongwith Mr. Vanit Kumar Seth, H.L. Gupta (accused No. 2) and Surendra Gupta, the brother of H.L. Gupta. But, both Surendra Gupta and H.L. Gupta resigned from the Board of Directors. However, accused No. 2, H.L. Gupta was appointed as Managing Director of the Company. On 5th April, 1997 the Board of Directors in their meeting resolved that hence forth the Bank Accounts that Allahabad Bank at Bokaro Steel City will be operated in one single signature of H.L. Gupta or J.K. Seth, the complainant as Director and the Bank shall honour the cheques.

(3.) A counter affidavit has also been filed by the Opposite Party No. 2 controverting the allegation made out in the petitioner. It is alleged that a huge amount was withdrawn and misappropriated in connivance with the petitioners and though the complainant, O.P. No. 2 had already resigned on 5th April, 1997 which was also accepted on 7th April, 1997. Anything mentioned in the letter dated 15.4.1997 contrary to the Resolution of the Board of Directors dated 7.4.1997 clearly proves the Criminal Act of the accused No. 2 as well as connivance with the petitioners because they used the said forged letter dated 15.4.1997 which was never served on the complainant, it is also claimed that Section195, Cr PC is not at all applicable in the case of the petitioners and the sanction does not require in this case as regards to the petitioners. The Court below has rightly took cognizance against the petitioners.